Real Estate Investor Magazine South Africa Dec/Jan 2016/17 | Page 24

ACQUIRING

Choosing the right

Investment Property

The easiest way to find the gems
BY GERT VAN STADEN

S

electing the right investment properties is
fundamental to the success of your property
investment success. If you choose the right
property, you can be almost assured that you will
enjoy good capital growth for many years, and that
the property will rarely - if ever - be vacant, which
will practically guarantee your property investment
success.
For this reason, our P3 Investment Group members
use the 10-point P3 Scorecard to evaluate each
potential investment property before making an
investment decision. Using this Scorecard, however,
is only one of the resources our members use to make
the right property investment decisions.

Pre-Selected Properties

To help our members find the best investment
properties, our property experts specialise in cherry
picking investment properties that meet the P3
Scorecard criteria from a range of sources. These
include units in new developments at preferential
prices, existing properties for sale, distressed or
urgent sales and instalment sales or ALA (Alienation
of Land Act) transactions. These property investment
opportunities are delivered directly to our members’
inboxes, saving time, reducing risk and fast-tracking
their investment success.

State-of-the-art software

P3 members also enjoy yet another powerful tool
to ensure they can make the right choice: the P3
Property Wealth Manager, a state-of-the-art and
custom-designed software programme, which
allows P3 members to “look into the future”. After
simply inputting the basic variables unique to each
property (the price, the monthly rental income, the
management costs and the rates and taxes, or levies)
into the easy-to-use programme, they have instant
access to four crucial indicators: the rental factor; the
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DEC/JAN 2017 SA Real Estate Investor

cash flow position at the outset; the breakeven date
and total investment amount; as well as the return
on investment (ROI) and internal rate of return
(IIR). These indicators provide P3 members with a
quick and accurate assessment of the quality of the
investment opportunity.

P3’S 10 SCORECARD VARIABLES
1 Price
2 Rental income
3 Break-even
4 Condition of the property
5 Vacancy
6 Area
7 Levies and taxes
8 Affordability
9 Control
10 Bank valuation

SPECIAL INVITE FOR REIM READERS
If you would like to discover how P3 selects its property investment
opportunities, you are invited to watch a video explaining our
selection approach at http://p3propertyinvestments.co.za/
videos/.

TRY IT!
If you would like to see how the P3 Property Wealth Manager
works, please feel free to visit http://p3propertyinvestments.
co.za/p3-wealth-manager-software/ for more information and
to download a free demo version of the software.

RESOURCES
P3 Investment Group
http://p3propertyinvestments.co.za
www.reimag.co.za